About logistics management

About logistics management
In the past, the purpose of implementing logistics management was to achieve the established level of customer service under the lowest possible total cost, that is, to seek a dynamic balance between service advantages and cost advantages, and thereby create strategic advantages for enterprises in the competition. According to this goal, the basic problem to be solved by logistics management is simply to provide the right products to customers at the right time and at the right place in the right quantity and at the right price.
Logistics management emphasizes the use of systematic methods to solve problems. Modern logistics is usually considered to be composed of transportation, storage, packaging, loading and unloading, circulation processing, distribution and information. Each link originally had its own function, interest and concept. The systematic approach is to use modern management methods and modern technology to make all links share overall information, and to organize and manage all links as an integrated system, so that the system can achieve the lowest possible total cost.
Next, provide customer service with a competitive advantage. The system approach believes that the benefits of the system are not simply the sum of the benefits of their various partial links. The systematic approach means that, for a certain aspect of the problem, it is necessary to analyze and evaluate all the influencing factors. Starting from this idea, the logistics system does not simply pursue the lowest cost in each link, because the benefits of each link in the logistics have a tendency to influence and restrict each other, and there is a relationship of alternating vulnerability. For example, excessive emphasis on the saving of packaging materials may increase transportation and handling costs due to their prone to damage. Therefore, the systematic approach emphasizes the need for total cost analysis, as well as analysis to avoid sub-optimal effects and cost trade-off applications, so as to achieve the lowest total cost while meeting the established customer service level.


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